Beyond the Zulu Principle: Extraordinary Profits from Growth Shares [Paperback]

"Good investment is often a case of turning conventional wisdom on its head", says Jim Slater in the very first sentence of chapter one. He certainly goes against received wisdom in proposing that small investors eschew diversification and concentrate their energies and their capital on 10 to 12 stocks. However, more than being an extension of the Zulu Principle, this volume serves as a companion to his real magnum opus, Company REFS (Really Essential Financial Statistics).

Slater draws an early distinction between "value" and "growth" investing, but the true underlying contest is between growth investing and the "Efficient Market" hypothesis that holds that "everything that is known about a company" is reflected in the share price. The fulcrum of the argument is that there are growth shares that are underpriced because the market has not yet absorbed available information and consensus forecasts. Beyond the Zulu Principle is dedicated to elucidating and applying the tests for determining whether a growth share has further to run. Much of this book makes compelling and seductive reading although after the initial euphoria, the doubts began to intrude--particularly regarding the theoretical underpinning of the crucial PEG factor--the ratio of the prospective P/E and estimated growth in EPS--which, unlike its constituents, seems to be an arbitrary ratio and does not appear to measure anything. Likewise, some of the author's arithmetic has an engaging seat-of-the-pants frisson.

In the main, Beyond the Zulu Principle is well focused, commendably brief and rarely heavy going. There is one final reservation, however. The usefulness of this volume in the absence of Slater's REFS itself is a moot point. REFS claims to take all the slog out of the testing process, but it costs. Do you sincerely want to be rich? --David Meyer --This text refers to an out of print or unavailable edition of this title.

Beyond The Zulu Principle is easy to read, understandable, enjoyable and enlightening. The nearest thing to a page-turner the sophisticated private investor will find on the financial bookshelves. --This text refers to an out of print or unavailable edition of this title.

This is Jim Slater's best book to date. --This text refers to an out of print or unavailable edition of this title.

There is a really superb chapter on Technology Stocks which alone justifies the book. --This text refers to an out of print or unavailable edition of this title.

The goal of all investors is to make the maximum profit from their investments. This work shows you how to do this by focusing on growth shares. The author believes he has discovered a major market anomaly that should enable both private and institutional investors to enjoy exceptional returns in the stockmarket. A number of important factors are crucial to successful investment. Jim Slater explains how to choose a company operating in the right sector with an advantage over its competitors. He also highlights the importance of directors dealings, CEO changes, relative strength, cash flow accelerating earnings and the capacity of some companies to clone their activities. The guidance offered in this book should help readers to make stockmarket profits well beyond the market averages.

Jim Slater is a Chartered Accountant who from 1964-1974 was Chairman of the legendary financial conglomerate, Slater Walker Securities. More recently he has devised Really Essential Financial Statistics (REFS) in conjunction with Hemington Scott, publishers of the Hambro Company Guide. REFS is a monthly investment service which is popular with private investors and institutions alike. Jim Slater's previous books, The Zulu Principle, Investment Made Easy and Pep Up Your Wealth have all been bestsellers. --This text refers to an out of print or unavailable edition of this title.